AAR Plunges 16% Despite Earnings Beat as Revenue Miss, One-Time Charge Weigh on Sentiment

AAR Corp. (NYSE:AIR) is a prominent player in the aircraft maintenance services industry. The company provides a range of services, including maintenance, repair, and overhaul (MRO) for commercial and government aircraft. AAR competes with other major MRO providers, striving to maintain its position through strategic initiatives and financial performance.

On July 23, 2025, Jennifer L. Vogel, a director at AAR, sold 7,000 shares of the company's common stock at approximately $78.07 per share. This transaction leaves her with 22,970 shares. The sale comes at a time when AAR is showcasing strong financial results, as highlighted by its impressive fourth-quarter performance.

AAR Corp. reported a record full-year revenue of $2.8 billion for fiscal 2025, a 20% increase. The company also achieved a 32% rise in its fourth-quarter adjusted earnings per share (EPS), reaching $1.16, up from $0.88 the previous year. This growth reflects AAR's effective strategies and operational efficiency.

The company confirmed a 14% organic sales growth in the fourth quarter, contributing to its improved net leverage of 2.7 times. AAR's adjusted EBITDA margin expanded by 140 basis points to 11.8% for fiscal 2025. These metrics indicate AAR's focus on deleveraging and optimizing its portfolio.

AAR's strategic moves include repurchasing $10 million worth of shares during the fourth quarter at an average price of $52.37 per share. Despite the stock's current price of $77.22, which is a 2.27% decrease today, AAR's financial achievements underscore its enhanced profitability and competitive positioning.

AAR (NYSE:AIR) shares rose over 4% pre-market today after the aviation services provider reported fourth-quarter fiscal 2025 results that exceeded expectations, driven by robust demand across both its commercial and government segments.

Revenue for the quarter rose 15% to $755 million, handily beating analyst forecasts. The company saw strong performance in new parts distribution and integrated solutions, fueling top-line growth.

Adjusted earnings per share came in at $1.16, surpassing expectations by $0.16. Adjusted EBITDA rose 19% to $91 million, while the EBITDA margin improved to 12.4% from 11.6% a year earlier, reflecting increased operational efficiency and a favorable shift in sales mix.

AAR also made notable progress in reducing debt, bringing net leverage down to 2.72x from 3.58x following its Product Support acquisition. Operating margin nearly doubled to 9.7% from 5.0% in the prior-year quarter, supported by scaled growth in parts supply and disciplined cost management.

For the full fiscal year, AAR posted $2.8 billion in revenue, marking a 20% increase, while adjusted diluted EPS climbed 17% to $3.91. Although GAAP net income declined due to non-operating charges, adjusted EBITDA soared 34% to $324 million, reinforcing the company’s strong financial momentum.

AAR (NYSE:AIR) shares dropped more than 16% today, as the company delivered better-than-expected earnings for the third quarter but fell short on revenue and reported a net loss due to a one-time charge.

The company posted adjusted EPS of $0.99, narrowly surpassing analyst expectations of $0.98. However, revenue came in at $678 million, missing the $698.97 million consensus, despite a 20% year-over-year increase driven by strength in aftermarket services.

Parts Supply sales grew 12%, while the Repair & Engineering segment surged over 53%, fueled by contributions from the Product Support acquisition and increased throughput at the company’s Airframe MRO facilities.

AAR also reduced its net leverage ratio from 3.58x to 3.06x over the past year and anticipates further balance sheet strengthening.

Despite the revenue miss and one-off hit to earnings, management emphasized a positive outlook, expecting ongoing sales momentum and additional margin expansion as strategic initiatives take hold.

• Michael Leshock from KeyBanc sets a price target of $83 for NYSE:AIR, indicating a potential upside of 19.41%.
• AAR Corp reports a 26% year-over-year revenue increase in its fiscal second-quarter 2025, with earnings per share (EPS) of 90 cents, surpassing estimates.
• The company's strong financial performance and robust position in the aerospace sector highlight its capacity to capitalize on the increasing demand for aircraft components.

AAR Corp (NYSE: AIR) is a leading provider of aviation services, catering to both commercial and government clients worldwide. The company specializes in aftermarket aircraft support, offering services to airlines, OEMs, fleets, military agencies, and operators. Unlike its competitors, Boeing Co. and Airbus SE, AAR Corp operates independently, providing unbiased solutions without ties to any specific airline or manufacturer.

On January 15, 2025, Michael Leshock from KeyBanc set a price target of $83 for AIR, suggesting a potential upside of approximately 19.41% from its current price of $69.51. This optimistic outlook is supported by AAR Corp's strong financial performance. In its fiscal second-quarter 2025 report, the company reported a 26% year-over-year revenue increase, driven by record sales and improved profit margins.

AAR Corp's earnings per share (EPS) of 90 cents exceeded consensus estimates by 5 cents, showcasing its ability to outperform market expectations. The company's revenues also soared 30% year-over-year to $686.1 million, surpassing the anticipated $654.47 million. This impressive growth underscores AAR Corp's robust position in the aerospace sector and its capacity to capitalize on the increasing demand for aircraft components.

The current stock price of AIR on the NYSE is $69.51, reflecting a slight increase of 0.04, or 0.0576%. Today, the stock has fluctuated between a low of $68.80 and a high of $70.43. Over the past year, AIR has reached a high of $76.34 and a low of $54.71. The company's market capitalization is approximately $2.5 billion, with a trading volume of 177,476 shares.

• Michael Leshock from KeyBanc sets a price target of $83 for NYSE:AIR, indicating a potential upside of 19.41%.
• AAR Corp reports a 26% year-over-year revenue increase in its fiscal second-quarter 2025, with earnings per share (EPS) of 90 cents, surpassing estimates.
• The company's strong financial performance and robust position in the aerospace sector highlight its capacity to capitalize on the increasing demand for aircraft components.

AAR Corp (NYSE: AIR) is a leading provider of aviation services, catering to both commercial and government clients worldwide. The company specializes in aftermarket aircraft support, offering services to airlines, OEMs, fleets, military agencies, and operators. Unlike its competitors, Boeing Co. and Airbus SE, AAR Corp operates independently, providing unbiased solutions without ties to any specific airline or manufacturer.

On January 15, 2025, Michael Leshock from KeyBanc set a price target of $83 for AIR, suggesting a potential upside of approximately 19.41% from its current price of $69.51. This optimistic outlook is supported by AAR Corp's strong financial performance. In its fiscal second-quarter 2025 report, the company reported a 26% year-over-year revenue increase, driven by record sales and improved profit margins.

AAR Corp's earnings per share (EPS) of 90 cents exceeded consensus estimates by 5 cents, showcasing its ability to outperform market expectations. The company's revenues also soared 30% year-over-year to $686.1 million, surpassing the anticipated $654.47 million. This impressive growth underscores AAR Corp's robust position in the aerospace sector and its capacity to capitalize on the increasing demand for aircraft components.

The current stock price of AIR on the NYSE is $69.51, reflecting a slight increase of 0.04, or 0.0576%. Today, the stock has fluctuated between a low of $68.80 and a high of $70.43. Over the past year, AIR has reached a high of $76.34 and a low of $54.71. The company's market capitalization is approximately $2.5 billion, with a trading volume of 177,476 shares.

AAR Corp. (NYSE:AIR) is a prominent player in the aerospace industry, providing a range of services and products to commercial aviation and government customers. The company competes with other aerospace firms like Woodward (WWD), focusing on delivering innovative solutions. AAR's diverse offerings include aviation services, supply chain management, and maintenance, repair, and overhaul (MRO) services.

On January 10, 2025, Garascia Jessica A., a key executive at AAR, sold 1,500 shares of the company's common stock at approximately $66.90 each. This transaction is significant as it reflects insider activity, which investors often scrutinize for potential insights into the company's future performance. Despite the sale, Garascia retains 37,565 shares, indicating continued confidence in AAR's prospects.

AAR's stock performance is under evaluation against other aerospace stocks, including Woodward. The company has been upgraded to a Zacks Rank #2 (Buy), suggesting optimism about its earnings potential. This upgrade indicates that investors might expect the stock to rise as confidence in AAR's financial health grows.

Currently, AIR's stock is priced at $67.72, showing a modest increase of 0.939% with a price change of $0.63. The stock has fluctuated between $64.87 and $67.805 today, reflecting market volatility. Over the past year, AIR has seen a high of $76.34 and a low of $54.71, demonstrating its dynamic market presence.

AAR's market capitalization is approximately $2.43 billion, with a trading volume of 609,786 shares. This market cap indicates the company's size and investor interest, while the trading volume reflects the stock's liquidity. As AAR continues to navigate the aerospace sector, its financial performance and stock movements remain closely watched by investors.